All Eyes are on Bitcoin

The psychology of the market is a curious thing. A week ago, Bitcoin at $7,900 seemed like a heaven-sent miracle, and today this price for the main asset is making players if not panicked, then certainly discontented and irritated. It’s understandable: when you are expecting a sharp rebound, and instead get a prolonged flat, plans for quick enrichment must be adjusted. But the market is a living organism where something is always happening. It’s full of opportunity for those who are prepared to seek and wait.

BTC / USD

The yellow line of resistance, which we applied to the markup yesterday, has confirmed its significance: after several unsuccessful attempts to break it, Bitcoin price went to test the nearest level of the Fibonacci retracement. The $7,800 mark is holding for now, but the lack of good purchase volumes and the formation of a bearish flag are hinting at a possible capitulation.

The formed “head and shoulders” figure, whose neck line has already been broken, also fits into the scenario of further decline for Bitcoin price. The dimensions of the figure indicate the target of $7,500, which coincides with a strong mirror level from April 3 and is located in the middle of the $7,400 - $7,600 range that we mentioned previously.

The activation of this figure is only one of the possible scenarios, and finding a foothold above $8,000 during the day will call into doubt a deeper correction - but for now, it seems like a logical development.

Check the full crypto analysis HERE